Software AG > Case Studies > The First Step in a Utility’s Digital Transformation

The First Step in a Utility’s Digital Transformation

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Customer Company Size
Large Corporate
Region
  • Asia
Country
  • Malaysia
Product
  • Alfabet Enterprise Architecture Management Platform
Tech Stack
  • Enterprise Architecture Tools
  • Integrated IT Portfolio Analysis Applications
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Utilities
Applicable Functions
  • Business Operation
Use Cases
  • Energy Management System
Services
  • Cloud Planning, Design & Implementation Services
  • System Integration
About The Customer
The customer is Malaysia’s leading electricity utility company that has been powering the nation for over 65 years. It generates, transmits and distributes electricity to 9.2 million residential, industrial and commercial customers. The company is also involved in new initiatives like a 50 megawatt (MW) large-scale solar plant and a photovoltaic energy offering for retail customers. Its community programs are lighting the streets of remote villages and supporting aspiring engineers with scholarships and educational programs. The company recently achieved an outstanding 8.1 Customer Satisfaction Index rating. And the World Bank rated Malaysia 8th out of 190 countries in its Doing Business Report 2018 under Getting Electricity.
The Challenge
Malaysia’s leading electricity utility is facing rising operating costs and the future risk of market deregulation. The utility generates, transmits and distributes electricity to 9.2 million residential, industrial and commercial customers. However, the rising cost of coal, which accounts for 55% of its power, is eating up the budget. Coupled with unrelenting growth in demand, driving internal cost efficiencies are now critical to business. Furthermore, the utility needs to accelerate service improvements as it faces a second, potentially greater threat: Market deregulation. The utility turned these challenges into an opportunity to flip the switch on for digital business transformation. But where to start? Like many companies, the utility’s view into its IT environment was via nothing more than a few Excel spreadsheets.
The Solution
The utility company chose Software AG’s Alfabet Enterprise Architecture Management Platform to gain full visibility into its IT environment and plan and build the future-ready enterprise architecture (EA) it required. The platform was chosen because Gartner had also rated Alfabet as the leader for Integrated IT Portfolio Analysis Applications (IIPA). Software AG’s pre-sales process was superior as was its reputation for partnership. And Professional Services, its in-house team of experts, could implement solutions time- and cost-effectively. A local call center and support team rounded out Software AG’s offering. The Alfabet platform shows where IT resources are being wasted. A typical enterprise with 500 applications and 1,000 technical components can easily save one million dollars a year by using Software AG’s Alfabet platform to map, rationalize and eliminate redundant applications.
Operational Impact
  • Captured data on 100 applications that support over 100 business capabilities across 15 divisions with over 250 application and technology owner touchpoints
  • Gained insight into the interdependencies of more than 200 components
  • Optimized IT operating (OpEx) and capital (CapEx) expenditures
  • Roadmapped its IT environment, informed its IT strategy and optimized its IT investment portfolio
  • Automated application lifecycle management and powered EA governance to mitigate business interruption even as new initiatives are aggressively rolled out
Quantitative Benefit
  • Potential savings of one million dollars a year by using Software AG’s Alfabet platform to map, rationalize and eliminate redundant applications
  • Project payback in under one year

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